Amkor Technology, one of the world’s largest outsourced chip assembly and testing firms, is weighing a sale of a stake in its China operations, a deal that could value the unit at between $1bn and $1.5bn, according to Bloomberg.
The Arizona-based company, which has been pouring record sums into advanced packaging, has engaged an adviser to prepare a carveout and gauge buyer interest, though anyone expecting a firm announcement should note that talks remain preliminary and, in the careful phrasing of people familiar with them, no decisions have been made.
The unit in question is no minor outpost. Amkor established its Shanghai presence in 2001 and expanded three years later by acquiring a semiconductor facility in the city from IBM, building up an operation that handles the unglamorous but essential work of assembling and testing chips once they leave the fab.
That work, known in the trade as outsourced semiconductor assembly and testing, or OSAT, sits at the tail end of the manufacturing process, yet it has grown into one of its most consequential steps.
Selling part of the business would let Amkor keep a minority stake while handing day-to-day ownership to someone else, a structure that neatly captures the mood of the moment.
